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pww.comCisco Systems, Inc. Presents at Tech Talk on Security from RSA 2024, May-07-2024 11:00 AM - SEHK:4333

SEHK:4333

Marty Palka [Executives] 💬

Marty Palka, representing Cisco's Investor Relations, made the following statements during the Tech Talk on Security:

  1. Introduction and Welcome:

    • Welcomed attendees to Cisco's tech talk on their securities business.
    • Introduced the speakers: Jeetu Patel, Executive Vice President of Security and Collaboration, and Tom Gillis, Senior Vice President of Security at Cisco.
    • Mentioned that Jeetu and Tom would have an interactive conversation with Tal Liani, Managing Director and Research Analyst of Security and Networking at Bank of America.

  2. Forward-Looking Statements Disclaimer:

    • Reminded the audience that forward-looking statements would be made during the presentation.
    • Noted that actual results may differ materially from these forward-looking statements due to risks and uncertainties, as detailed in Cisco's 10-Q and 10-K filings.

  3. Transition to Tal Liani:

    • Handed over the presentation to Tal Liani, the Managing Director from Bank of America.

  4. Closing Remarks:

    • Thanked Tal Liani and expressed anticipation for Jeetu and Tal's continued conversation at the BofA tech conference on June 6.

    • Mentioned upcoming events: Cisco's quarterly call on May 15 and Investor Day on June 4.

    • Requested Heather Whitfield to close the call.

Jeetendra I. Patel [Executive VP and GM of Security & Collaboration] 💬

Jeetendra I. Patel, Executive Vice President of Security and Collaboration at Cisco, discussed several topics during the Tech Talk on Security from RSA 2024:

  1. Background and Tenure at Cisco:

    • Joined Cisco 3 years ago.
    • Built out the team.

  2. Strategy Overview:

    • Over the past 5-6 years, Cisco worked on improving its product portfolio to ensure it was world-class.
    • Approximately 3-3.5 years ago, Cisco began focusing on building a world-class platform, recognizing the industry's shift from point solutions to integrated platforms.
    • Launched the vision for the Cisco Security Cloud platform about 2 years ago, which abstracts security services from hyperscalers.
    • The platform addresses user protection, cloud infrastructure protection, and breach protection.

  3. Platform Differentiators:

    • The platform includes common login, telemetry, design language, and policy objects to manage solutions cohesively.
    • Emphasizes the importance of deep hooks into the infrastructure and the integration of AI for defenses.
    • Networking and security are converging, and deep integration with the infrastructure is crucial for effective security.

  4. Product Innovation:

    • Since launching the platform capabilities in 2023, Cisco has seen more innovation in security than in the previous decade combined.
    • Expectation of even greater innovation in 2024.
    • Recent innovations include the SSC product, XTR product, and multi-cloud defense, which are available in the market, with identity intelligence expected to be available soon.

  5. Customer Feedback:

    • Recently hosted 41 CISOs at an event, where they expressed skepticism but left impressed by Cisco's strategy and execution.
    • Products shown were aligned with the strategy and were either in general availability or nearing release.

  6. Platformization vs. Bundling:

    • Explained the difference between bundling and platformization, emphasizing that platformization involves a common way of managing identity, policies, and telemetry across products.
    • Deep hooks into the infrastructure are a key aspect of the platform, allowing security to be distributed and enforced across the network.

  7. Growth and Market Position:

    • Due to the quiet period, could not comment on specific growth figures but provided a macro perspective.
    • Highlighted the shift in momentum and sentiment among partners and customers.
    • Expects a steady and consistent improvement in market position.

  8. Competition and Pricing:

    • Views Microsoft as complementary rather than a direct competitor due to unique capabilities in connecting endpoints to applications.
    • Competitors include network security players like Palo Alto Networks and Zscaler.
    • Differentiation is based on efficacy, experience, and total cost of ownership.
    • Acquisitions like Splunk provide strategic advantages in data correlation and integration.

  9. Hypershield:

    • Described Hypershield as a distributed security fabric that enables autonomous segmentation using AI.
    • Solves key problems such as containing lateral movements, reducing vulnerability exposure time, and simplifying updates.

  10. Target Customers:

    • Targets enterprise customers, including networking professionals, CISOs, and SOC teams.

  11. User Protection Suite:

    • Offers a single experience for users regardless of location or application type.
    • Simplifies management and access through a unified console.
    • Incorporates identity intelligence for enhanced threat detection and response.

  12. Point Solutions vs. Platforms:

    • Customers increasingly prioritize efficacy and ease of management.
    • Best-of-breed solutions are less relevant compared to integrated platforms that provide better insights and troubleshooting capabilities.

  13. Cloud Infrastructure:

    • Cisco leverages its expertise in building scalable cloud infrastructure, including data centers and hyperscaler partnerships.
    • Infrastructure is not a limiting factor in delivering security services.

  14. Business Model Transition:

    • Cisco is transitioning to a 50% recurring revenue model.
    • New products are SaaS-based and designed for rapid innovation and integration with core networking platforms.

  15. SOC Importance:

    • Emphasized the importance of the SOC in responding to breaches effectively.
    • Correlates multiple data sets to graduate alerts to breaches, enabling near-real-time detection, remediation, and recovery.

  16. Future Outlook:

    • Anticipates significant changes in the SOC due to advancements in AI, distributed computing, and software constructs.

    • Sees Cisco as well-positioned to capitalize on these changes and accelerate its market position.

Tom Gillis [Senior VP & GM of Security Business Group] 💬

** Key Points Mentioned by Tom Gillis**

  • Product Excellence and Integration: Emphasized the importance of product excellence and integrating various security functions into a single, easy-to-deploy platform. Highlighted the user protection suite, which combines firewall, IPS, VPN, zero trust, and browser isolation into one integrated console with common login and policies.

  • Real-Time Analytics and Automation: Introduced Cisco XDR, a real-time analytics engine that identifies unique sources of telemetry to build automated actions necessary for breach protection.

  • Cloud Protection Focus: Current focus is on the cloud protection suite, particularly Hypershield, which is a premier part of the cloud protection suite designed to secure distributed environments and microservices.

  • Competitive Positioning: Viewed Microsoft as a complementary partner rather than a direct competitor, focusing on network security players like Palo Alto Networks and Zscaler. Stressed the advantage of integrating security into the network fabric.

  • Hypershield Details: Explained Hypershield as a distributed security system that places security enforcement points next to applications, providing deep understanding and tuning of security policies to match application vulnerabilities. Highlighted the use of AI for self-managing security rules.

  • Customer Outcomes: Customers care about outcomes, and Cisco aims to deliver better outcomes through unique integration advantages and deep hooks into the network infrastructure.

  • SaaS and Subscription Model: New products like SSE, XTR, Hypershield, and multi-cloud defense are SaaS products, aligning with Cisco’s broader strategy to transition to recurring revenue models. Emphasized the combination of hardware and SaaS to provide comprehensive solutions.

  • SOC Importance: Discussed the significance of Security Operation Centers (SOCs) in detecting, responding, and recovering from breaches in near real-time. Highlighted the role of AI and distributed compute in fundamentally changing SOC capabilities.

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